Quite simply, what we THOUGHT was a Sideways Range was NOT actually a Sideways Trading Range.

What’s changed our thinking and what does it mean about the current state of the coiled stock market?

Let’s take a look:

First, let’s build off an assumption that we’re challenging.

I’d multiple times recently assumed that the S&P 500 was “coiling” or trading within a well-defined sideways rectangle (horizontal trading range) which was similar to that of January (ahead of February’s breakout).

Indeed we’ll adjust quickly to the bearish side if the market falls and holds under 2,075.

However, we’ll place today’s tiny bullish action – the “failure” to break impulsively to new highs (so far) – as part of this higher timeframe perspective of the lengthy Wedge pattern and persistent bullish upside action.

Rise above the tiny, one-month “Rectangle” and put the monthly pattern into the context of what is a YEARLY pattern that has been developing – of which what we thought was a rectangle is actually the latter part of a much larger bullish wedge.